Investment Objectives

Investment Objectives

Our investment strategy is to invest in commercial and residential mortgages from borrowers whose financing needs are not being met by the larger financial institutions. To maintain a stable yield on our mortgage portfolio, we manage risk through maintenance of a diversified mortgage portfolio, conservative underwriting and
diligent and aggressive mortgage servicing. A typical loan in our portfolio has an interest rate of
7.5% to 10% per annum, a one or two year term and monthly interest only mortgage
payments. Mortgage loan amounts are generally $500,000 to a maximum of
$20,000,000. As at December 30, 2016, the weighted average loan-to-value
on our mortgage portfolio was 62.7% and the weighted average
interest rate was 8.5%

Our objectives are: (i) to preserve our shareholders’ equity, and (ii) to
provide our shareholders with stable and secure dividends from
our investments in mortgage loans within the criteria
mandated for a MIC. Working within conservative
risk parameters, we endeavour to maximize
yields dividends and common share
value through the sourcing and
efficient management
of our mortgage
investments.

As at December 30, 2016:

 

Mortgage Rank

First Mortgages

Second and Third Mortgages

Real Estate Type

Residential

Commercial

Loan-To-Value

>75%

< 75%